Almost 827,000 people could have an average £2,310 sitting in a Child Trust Fund they have yet to claim.
HM Revenue & Customs (HMRC) has urged people aged 18 to 24 to check whether they have one of the long-term savings accounts after revealing that almost 3 million matured Child Trust Funds have already been claimed or transferred into an Individual Savings Account since September 2020.
The accounts were set up for children born between September 1, 2002 and January 2, 2011, with an initial Government contribution of at least £250.
That means millions of young adults could have money waiting for them without realising it.
Child Trust Funds mature when the account holder turns 18. At that point, they can choose to withdraw the money, leave it invested or transfer it into another savings product.
How to find your Child Trust Fund
Young adults who know their provider can contact the bank, building society or savings provider directly.
If they do not know where their account is held, they can use the free Child Trust Fund locator tool on GOV.UK.
Almost 500,000 young people used the locator tool in the nine months to August this year, showing the scale of interest in tracking down the forgotten savings.
It takes around five minutes to submit a request using the young person's National Insurance number and date of birth.
For most people, HMRC says it takes less than three weeks to hear back.
Parents and guardians can also help young people locate their accounts.
The money is not held by the Government. Child Trust Funds are held by banks, building societies and other savings providers.
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Young people share what they did with the money
Anna, 18, from London, has already claimed her Child Trust Fund.
She said: "It was really straightforward. Nationwide kept me updated the whole way through and explained how to access the money. I’m heading off to university soon, and I honestly had no idea how expensive things like saucepans, plates and all the other essentials would be, so this support has been really helpful."
Another 18-year-old, Matteo from London, has decided to leave his savings invested for now.
He said: "I’ve just turned 18 and I’m looking at all my options before deciding what to do with my Child Trust Fund. My parents have topped it up over the years, so it’s grown into a really useful amount of money.
"I don’t want to rush into anything or waste it, so I’m taking the time to work out what’s best for me."
Child Trust Funds were designed as long-term, tax-free savings accounts for children.
Young people could take control of their account from the age of 16, but the money becomes fully accessible when the account matures at 18.
HMRC warning to young adults
A Child Trust Fund Taskforce has been established to help more young people access accounts they may not know they have.
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Economic Secretary to the Treasury Lucy Rigby, who leads the Taskforce, said: "The oldest matured Child Trust Fund accounts are now more than six years old and some young people may not know they have savings waiting for them.
"The Taskforce has been set up to help those young people who don’t know about their savings. If you’re unsure where your account is, you can find, quickly, easily and for free using the GOV.UK locator tool."
Young people who do not have their National Insurance number to hand can download it through the HMRC app and save it in their digital wallet.
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